Mexican Supplier Cooperation for BMW, Mercedes

Published Date : Nov 18, 2014

Daimler is currently working with its rival automaker BMW to create a supplier chain for new factories in Mexico. This was announced on Monday by Klaus Zehender, the divisional board member for supplier quality and procurement at Mercedes-Benz, Daimler.

The effort comes as a part of a larger one by Mercedes-Benz to expand its chain of local suppliers to their factories in China, South Africa, United States, and Mexico.

In the first half of this year, Daimler and BMW announced their plans to invest US$1 billion to construct a plant in Mexico and use the nation’s growing industrial base along with its tariff free access to the market in the United States.

Zehender said that they have received BMW’s cooperation for eight years and that cooperation is still alive and well. Both companies are looking to work together in Mexico, gathering up a potential cost savings of almost 10 percent.

Zehender did however decline to comment on the overall reach of the potential agreement. He merely added that Mexico lacked an established network of suppliers for the components that were ideal for premium caliber cars.

He also said that working in tandem with BMW in order to establish a supply chain was part of a larger scheme to create more components in international locations where there already existed factories of Mercedes-Benz. This news comes after the company’s decision to source 60 percent of the new C-class vehicle’s components locally.

He said that future generation models could see almost 80 percent of local sourcing, including the compact cars that are to be made in Mexico.